PETROSOL Bond Attracts GH¢178m Demand as Company Raises GH¢100m

 

PETROSOL Platinum Energy PLC has raised GH¢100 million from its maiden corporate bond after investors submitted bids worth GH¢178.07 million, highlighting strong demand for corporate debt on Ghana’s capital market.

The oil marketing company listed its Series 1 and Series 2 Notes on the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange (GSE), marking the first issuance under its GH¢200 million Note Issuance Programme approved by the Securities and Exchange Commission and the GSE.

The bond was 178% subscribed, with demand exceeding the amount on offer by GH¢78.07 million.

The four-year Series 1 Note attracted GH¢114.28 million in bids against a GH¢50 million target, representing a 229% subscription from 66 investor clients.

The five-year Series 2 Note received GH¢63.80 million in bids against a GH¢50 million target, representing a 128% subscription from 18 investor clients.

The strong demand comes as Ghana’s capital market seeks to provide businesses with alternatives to traditional bank financing.

PETROSOL targets lower financing costs

PETROSOL said it will use the GH¢100 million to strengthen working capital and change the way it procures petroleum products.

The company plans to increase cash purchases of fuel instead of relying heavily on credit, a move it expects will lower its cost of sales and improve margins.

Part of the funds will also finance the expansion of its retail network as the company seeks to increase its presence across the country.

PETROSOL plans to return to the market for the remaining GH¢100 million under the note programme as it executes its expansion strategy.

The company currently operates 109 service stations across 13 regions, up from four stations in 2014. It supplies petrol, diesel, LPG and lubricants to retail and corporate customers.

Three-year preparation

PETROSOL said its entry into the capital market followed nearly three years of preparations aimed at strengthening its governance and financial reporting.

The company restructured its board in 2024 and appointed independent non-executive directors. It subsequently converted into a public limited liability company in October 2025 and established board committees responsible for audit and risk, remuneration and nominations.

It also migrated to full International Financial Reporting Standards (IFRS) reporting.

Daniel Acheampong, Chairman of PETROSOL, said the oversubscription showed that investors had responded positively to the company’s efforts to strengthen its governance and reporting systems.

“We are proud to bring PETROSOL to the Ghana Fixed Income Market of the Ghana Stock Exchange on the strength of that credibility,” he said.

Chief Executive Officer Michael Bozumbil said accessing the capital market was part of PETROSOL’s long-term growth strategy.

He said the company would deploy the funds strictly for the purposes disclosed to investors, including working capital, cash-based fuel procurement and expansion of its retail network.

The transaction was arranged by Absa Bank Ghana and Databank Brokerage, with KPMG serving as reporting accountants, Fidelity Bank Ghana as note trustee and Kimathi & Partners as legal advisers.

Trading in the Series 1 and Series 2 Notes on the GFIM begins following the listing, with settlement, registry and depository services provided by the Central Securities Depository (GH) Ltd.